Positive Chicago PMI and Pending Home Sales Index for November fail to outweigh concern about the fiscal cliff as year’s end approaches. The major American stock indices declined again on Friday as time continued to run out for avoiding the fiscal cliff.  Anxiety about the budget impasse overshadowed the day’s positive economic news.  The Chicago PMI for December (now known as the Chicago Business Barometer) advanced further into the range of economic expansion from 50.4 to 51.6 and the National Association of Realtors reported that its Pending Home Sales Index for November rose 1.7 percent to 106.4.   Fiscal Cliff Notes: Interpreting the Deadline News As of 2:26 EST, the Dow Jones Industrial Average fell 97 points (0.74 percent) to 12,999.  The S&P 500 Index dropped 0.64 percent to 1,409 (NYSEARCA:SPY).  The 50-day moving average has been an important support level for the S&P 500.  As the chart (on the left) indicates, the S&P 500 has now broken below its 50-day moving average of 1,412.  Its next support level is the 200-day moving average of 1,390 – which is not very far away.  The Relative Strength Index has fallen to 45.  The bear appears ready to crawl out of his cave one month ahead of the groundhog. (Chart courtesy of  Stockcharts.com )  The Nasdaq Composite declined 0.42 percent  to 2,973 (NASDAQ:QQQ).  The Russell 2000 Index dipped 0.15 percent to 836 (NYSEARCA:IWM). The “Dollar Bull” Index ETF (NYSEARCA:UUP) advanced 2 cents 0.09 percent to 21.78 as of 1:54 EST. As of 1:44 EST, the S&P 500 Volatility Index – or VIX – advanced 3.60 percent to 20.17  and the VIX Short-Term Futures ETN advanced 3.11 percent to 34.76 (NYSEARCA:VXX). In Europe, stocks declined on what was the final trading day for the year for many exchanges, including the Frankfurt Stock Exchange.  The Euro STOXX 50 Index finished Friday’s trading session with a 1.90 percent swoon to 2,609.  The STOXX 50 is staying above its 50-day moving average of 2,551.  It remains just a whisker above its March 19 high of 2,608 (NYSEARCA:FEZ).  The FTSE 100 Index dropped 0.49 percent to 5,925 (NYSEARCA:EWU).  The German DAX Index fell 0.57 percent to 7,612 (NYSEARCA:EWG).  France’s CAC 40 Index sank 1.47 percent to 3,620 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index took a 1.81 percent nosedive to 8,131 (NYSEARCA:EWP).  Italy’s FTSE MIB Index declined 0.82 percent to 16,273 (NYSEARCA:EWI). As of 1:49 EST, the euro declined 0.15 percent against the dollar, trading at $1.3218 (NYSEARCA:FXE). On London’s ICE Futures Europe Exchange, February futures for Brent crude oil declined by 31 cents (0.28 percent) to $110.49/bbl. (NYSEARCA:BNO, NYSEARCA:USO). February Gold futures declined by $6.90 (0.41 percent) to $1,656.80 per ounce (NYSEARCA:GLD).   Gold and Silver Claw Out Gains Amidst Fiscal Cliff Fears ETF Summary:  SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)  -0.67%   as time continues to run out for resolving the budget impasse, fiscal cliff anxiety builds. SPDR EURO STOXX 50 ETF (NYSEARCA:FEZ)  -1.74%  as many European stock exchanges finish their last trading day of 2012, Spain leads the charge downward after Prime Minister Mariano Rajoy warns of more pain during the first half of the new year. Vanguard REIT ETF (NYSEARCA:VNQ)  -0.55%  despite the 1.7 percent jump in the Pending Home Sales Index for November. iShares Barclays 20+ Year Treasury Bond Fund (NYSEARCA:TLT)  +0.39%  as declining stock prices cause investors to become more risk-averse, making the safe haven of government bonds more attractive.  Learn More About iShares ETFs . SPDR S&P 500 INDEX ETF (NYSEARCA:SPY)  -0.70%  as the budget negotiation impasse spells trouble for stocks. Bottom line:  Investors continue to sweat out the budget impasse as anxiety about the fiscal cliff overshadows an upbeat Chicago PMI and an improved Pending Home Sales Index. Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator!    Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.